Ackman's hedge fund Pershing Square bets on Meta, exits Hilton

Core Viewpoint - Pershing Square Capital Management, led by Bill Ackman, has invested approximately $2 billion in Meta Platforms, anticipating significant long-term benefits from artificial intelligence (AI) despite recent stock price declines [1][1]. Investment Strategy - The hedge fund allocated about 10% of its capital to the Meta investment, indicating a strong belief in the company's undervalued potential [1]. - Ackman’s team noted that Meta's stock has increased by 11% in 2025 and 3% in 2026 through February 9, despite a 7.4% decline over the past year [1][1]. AI Initiatives - Concerns regarding Meta's spending on AI initiatives have affected its stock performance, but the investment team believes AI will enhance content recommendations and personalized advertising, potentially increasing user engagement through AI-driven tools [1][1]. Market Position - Ackman has shown interest in major technology companies, having previously invested in Amazon and Alphabet, positioning Pershing Square as a significant player in the tech investment landscape [1][1].